Complaint shuffling clouds Sebi redress platforms

Investors say cases bounced between SCORES and MI Portal, leaving grievances unsettled

- KHUSHBOO TIWARI & SAMIE MODAK

The efficiency of the Securities and Exchange Board of India’s (Sebi’s) investor complaint redress platforms — Sebi Complaints Redress System (SCORES) and the Market Intelligence (MI) Portal — has come under scrutiny, with market participants alleging that complaints are frequently redirected between the two systems or closed without substantive examination by stock exchanges or the regulator.

SCORES and the MI Portal recently came into focus during proceedings before the Securities Appellate Tribunal (SAT) in a dispute involving Varun Beverages and Tanzania Bottling Company (TBC) SA.

SCORES allows investors to lodge complaints related to the securities market against listed companies, Sebi-registered intermediaries, and market infrastructure institutions. The MI Portal, by contrast, is intended to provide information to Sebi regarding alleged violations of securities laws.

TBC approached SAT after Sebi last year set aside its complaint filed on SCORES, which sought disclosures from Varun Beverages on the termination of a share purchase agreement.

While SAT directed Sebi to reexamine the matter, it also observed that TBC’s complaint had not been considered in the “right perspective”, adding that the complaint filed on the MI Portal met a similar fate.

Legal experts said the order underscores systemic gaps in the design and functioning of both SCORES and the MI Portal, as well as inconsistencies in Sebi’s handling of complaints.